A contract assignment occurs when a buyer (typically a wholesaler) places a property under contract and then transfers their contractual rights to another buyer.
Key points:
The wholesaler is not selling the property
They are selling their right to purchase the property
The end buyer steps in and closes directly with the seller
In an assignment, you are buying the property from the original seller.
What happens:
You take over the wholesaler’s contract
You pay the seller plus an assignment fee to the wholesaler
The wholesaler never takes title
Your role:
Close directly with the seller
Fund purchase price + assignment fee
In a double closing, you are buying the property from the wholesaler.
What happens:
Wholesaler buys from seller (A → B closing)
You buy from wholesaler (B → C closing)
Your role:
Close with the wholesaler (not the original seller)
The wholesaler takes temporary ownership
Often used when fees are large or confidentiality is preferred
| Feature | Assignment | Double Closing |
|---|---|---|
| Who you buy from | Seller | Wholesaler |
| Wholesaler takes title | No | Yes |
| Assignment fee | Yes | No (built into price) |
| Transparency | Fee is visible | Fee is hidden |
| Cost to wholesaler | Lower | Higher (two closings) |
| Common use | Smaller fees | Larger fees or sensitive deals |
Make sure you receive:
Original purchase contract
Assignment agreement (if applicable)
All addenda and disclosures
Confirm the wholesaler has the legal right to assign.
Ask the title company:
“Is this an assignment or a double closing?”
“Who is listed as the seller on my contract?”
This prevents last-minute issues.
If Assignment:
Purchase price = seller’s price
Assignment fee paid to wholesaler
If Double Closing:
You only see your purchase price
Wholesaler profit is built into the deal
Assignments can sometimes miss important details.
Make sure:
You have inspection access
The seller approved the assignment
You understand cancellation terms
Title is clear from the original seller
These deals often include:
“As-is” contracts
Non-refundable deposits
Tight timelines
Always review terms carefully—many are written for investors.
Watch for these red flags:
Wholesaler will not provide the original contract
Contract is not legally assignable
Non-refundable deposit with no inspection period
Title company raises concerns
Seller is unaware of the assignment
Assignment: You buy from the seller; wholesaler earns a fee
Double Closing: You buy from the wholesaler; they take title first
Always review the contract chain, structure, and financial details before proceeding